Exhibit 99.1
FOR IMMEDIATE RELEASE | | For more information, contact: |
| | Lyne Andrich | 303.312.3458 |
| | Sue Hermann | 303.312.3488 |
| | | |
COBIZ INC. Reports 38% Increase in Quarterly Net Income, 35% Increase in EPS
Company posts 35% net income and 28% EPS increases for the year
DENVER — Jan. 20, 2005 — COBIZ INC. (Nasdaq: COBZ), a $1.70 billion financial services company, today reported a 38.0% increase in net income, increasing to $5.31 million for the fourth quarter of 2004 from $3.85 million for the fourth quarter of 2003. Earnings per share (diluted) for the same periods grew to $0.23 from $0.17, a 35.3% increase. For the year, COBIZ grew net income to $17.63 million from $13.03 million, a 35.3% increase. Also for the year, earnings per share (diluted) grew to $0.78 from $0.61, a 27.9% increase.
“I am delighted with our performance this quarter and for all of 2004,” said Steven Bangert, chairman and CEO, COBIZ INC. “This was an important year for us as our business model really came together to produce tremendous results. Since 2001, we’ve added property and casualty insurance, investment banking, investment advisory, employee benefits, and estate planning and wealth transfer services to our business banking platform to create a franchise that is unique in our markets.
“In 2004 all parts of the company contributed to our success, and we witnessed a growing recognition of the power behind the COBIZ brand. Our banks produced solid loan and deposit growth, while our fee-based businesses helped grow non-interest income by almost 64% for the year. During the past four years, we’ve been able to grow our non-interest income as a percentage of operating income to 31.5% for 2004 from 19.2% for 2001.”
According to Bangert, the continued strength of the Arizona market and the improvements in the Colorado economy also helped to drive COBIZ forward. He stated the company is well positioned to capitalize on the growth in Arizona and the continuing recovery in Colorado.
The Phoenix metro area posted the second-highest job growth in the nation from November 2003 to November 2004, adding 51,600 jobs for a 3.1% increase. In 2004, Arizona was the second-fastest growing state in the nation, with an average growth rate of 3.0%. The population increases have driven housing permits to record highs, with an estimated 60,000 housing permits issued in metropolitan Phoenix in 2004, a 50% increase in just two years.
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The Denver metro area also posted positive job growth of 1.2%, adding 14,200 jobs from November 2003 to November 2004. Colorado was the 14th-fastest growing state in the nation in 2004, adding 53,770 new residents for an average growth rate of 1.2%. The recovering economy has revived housing starts, which were up almost 20% for the first 10 months of 2004 in metropolitan Denver.
Commercial Banking
The company’s banking franchise – Colorado Business Bank and Arizona Business Bank – increased loans by 18.1%, or $170.69 million for the year. After posting exceptionally strong growth in the third quarter of 2004, the bank’s growth rate slowed somewhat in the fourth quarter. The bank does anticipate, however, solid growth for 2005. The bank’s commercial portfolio led the increases, growing by 25.6% for the year, compared to a 2.6% increase for the banking industry nationwide. The real estate department in Arizona, created in 2003, grew loans by 25.8% during 2004.
The banks grew deposits and customer repurchase agreements (repos) by 18.1%, or $199.27 million, in 2004. During the fourth quarter, deposits increased at an annualized rate of 14.3%, or $45.30 million. The quarterly growth was led by the Colorado bank, which grew deposits at an annualized rate of 18.4%, or $47.81 million, for the quarter and 18.0%, or $165.19 million, for the year. On a combined basis, the banks experienced the largest deposit increases from NOW and Money Market accounts, which increased by 32.9% for the year, and non-interest-bearing deposits, which increased by 17.0% for the year.
“As we move toward critical mass in Arizona, we’ve been able to take advantage of that state’s continuing expansion to rapidly increase our presence in metropolitan Phoenix,” said Jonathan C. Lorenz, vice chair and CEO, Colorado Business Bank and Arizona Business Bank. “As the Colorado economy gains momentum, we’ve been able to gain market share and continue our growth in that state as well.”
The company’s net interest margin increased by 9 basis points to 4.23% in the fourth quarter of 2004 from 4.14% in the third quarter of 2004. The margin expanded throughout the second half of the year, and COBIZ should experience some additional margin expansion in the coming year if short-term interest rates increase as currently predicted.
Nonperforming assets as a percentage of total assets ended the year at 8 basis points. For years, the company has consistently outperformed its peers in terms of asset quality. The company continues to experience strong asset quality with minimal loan charge-offs; net charge-offs as a percentage of the company’s total loan portfolio for the year were slightly more than 7 basis points.
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Fee-Based Business Lines
Investment Banking
Green Manning & Bunch (GMB) experienced an exceptional fourth quarter, generating $5.33 million in revenue, a record high in the firm’s 16-year history. In 2004, GMB closed 16 transactions and generated revenues of $9.25 million. This reflects a $0.14 per share improvement over GMB’s performance in 2003 – a contribution of $0.08 per share in 2004 compared to a loss of $0.06 per share in 2003.
Beginning 2004 with a significant pipeline of deals, GMB experienced a high level of success in closing transactions. “GMB closed 2004 with a great deal of momentum, and we’re pleased with how they performed this past year,” said Bangert. “We do expect GMB to continue to be a contributor in 2005, but it will be difficult for them to equal the results achieved in 2004.”
Insurance
The fourth quarter of the year is typically a good one for the company’s insurance segment – composed of Financial Designs Ltd. (FDL) and CoBiz Insurance. The fourth quarter of 2004 was no exception, generating net income of $365,000 for the quarter, compared to a loss of $84,000 in the third quarter of 2004. For the year, the insurance segment generated earnings of $0.03 per share, compared to $0.07 per share in 2003.
The segment experienced an unusually strong fourth quarter of 2003, driven largely by one-time transactions in FDL’s wealth transfer group which were responsible for revenues of $2.79 million. Much of the growth for the fourth quarter of 2004, on the other hand, was generated by employee benefits and property and casualty insurance brokerage, both of which are more recurring in nature.
Investment Advisory and Trust
Alexander Capital Management Group (ACMG) and CoBiz Private Asset Management make up the company’s investment advisory and trust segment. The companies had combined assets under management of $509.28 million at the end of 2004, representing an increase of 23.5% over 2003.
Bangert said this segment has exceeded the company’s expectations since the acquisition of ACMG in 2003. He said that 2005 would be a key year for ACMG, with the company planning to add to its infrastructure with two key hires in its management team and make extensive operational changes to position it for future growth.
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Conclusion
“We celebrated our company’s 10th anniversary in 2004 by posting our strongest performance yet,” said Bangert. “We accomplished a great deal this past year, including:
• announcing four new banks. Two of the banks – Colorado Business Bank-Northwest and Arizona Business Bank-Camelback, were open by year end. The remaining two – Arizona Business Bank-East Valley and Arizona Business Bank-Chandler – are set to open in the first and second quarters of 2005, respectively.
• effecting a three-for-two stock split in April;
• raising $30 million through a trust-preferred securities offering in May; and
• successfully establishing focused construction and health care practices at GMB.
For the coming year, Bangert expects all parts of the company to operate profitably. COBIZ is also undertaking several initiatives related to infrastructure to accommodate the company’s projected future growth. With their continuing success in attracting senior-level bankers, the company will continue to opportunistically look for new locations in Colorado and Arizona during 2005. For the company’s fee-based businesses, Bangert anticipates an increased presence for GMB Business Advisors, a division formed late in 2003 to serve the needs of lower middle-market companies in the Rocky Mountain region. He also expects expansion of the company’s insurance and investment advisory business lines into Arizona.
“As I look back on the past decade, I’m very proud of what our employees have created at COBIZ,” said Bangert. “We continue to recruit talented professionals to our franchise; in fact, we were just recognized as one of the top three “Best Places to Work” in Colorado by the Denver Business Journal. We continue to attract and retain top-tier customers. And, we continue to produce real results for our shareholders. I look forward to seeing what we can accomplish in our second decade of operation.”
In conjunction with this earnings release, you are invited to take part in a conference call to be broadcast live on Friday, Jan. 21, 2005 at 11 a.m. Eastern Standard Time with Steven Bangert, chairman and CEO, COBIZ INC. The call can be accessed over the Internet at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=62236&eventID=987274 or by telephone at 1.800.322.0079 (1.973.935.2100 for international callers).
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COBIZ INC. (www.cobizinc.com) is a $1.70 billion financial holding company headquartered in Denver. The company operates Colorado Business Bank and Arizona Business Bank, full-service commercial banking institutions that offer a broad range of sophisticated banking services — including credit, treasury management, investment and deposit products — to a targeted customer base of professionals and small to mid-sized businesses. COBIZ also offers trust and fiduciary services through CoBiz Private Asset Management; property and casualty insurance brokerage and risk management consulting services through CoBiz Insurance; investment banking services through Green Manning & Bunch; the management of stock and bond portfolios for individuals and institutions through Alexander Capital Management Group; and employee and executive benefits consulting and wealth transfer services through Financial Designs.
This report contains forward-looking statements that describe COBIZ’s future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
• Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent 10-Q.
• Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.
• Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.
• Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and leases and related expenses.
• Our inability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects.
• Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.
• The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.
• Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.
• Changes in legislative or regulatory requirements applicable to us and our subsidiaries could increase costs, limit certain operations and adversely affect results of operations.
• Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this report. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
# # #
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CoBiz Inc
December 31, 2004
(unaudited)
(Dollars in thousands, except per share amounts)
| | Quarter Ended | | Year Ended | |
| | Dec-04 | | Dec-03 | | Dec-04 | | Dec-03 | |
INCOME STATEMENT DATA | | | | | | | | | |
Interest Income | | $ | 21,985 | | $ | 16,984 | | $ | 77,466 | | $ | 65,009 | |
Interest Expense | | 5,332 | | 3,527 | | 17,387 | | 14,234 | |
NET INTEREST INCOME BEFORE PROVISION | | 16,653 | | 13,457 | | 60,079 | | 50,775 | |
Provision for loan and lease losses | | 575 | | 1,120 | | 3,015 | | 2,760 | |
NET INTEREST INCOME AFTER PROVISION
LOAN AND LEASE LOSSES | | 16,078 | | 12,337 | | 57,064 | | 48,015 | |
Noninterest Income | | 10,419 | | 6,427 | | 27,602 | | 16,799 | |
Noninterest Expense | | 18,099 | | 12,769 | | 56,809 | | 44,337 | |
INCOME BEFORE INCOME TAXES | | 8,398 | | 5,995 | | 27,857 | | 20,477 | |
Provision for income taxes | | 3,085 | | 2,145 | | 10,231 | | 7,447 | |
NET INCOME | | $ | 5,313 | | $ | 3,850 | | $ | 17,626 | | $ | 13,030 | |
| | | | | | | | | |
EARNINGS PER COMMON SHARE | | | | | | | | | |
BASIC | | $ | 0.24 | | $ | 0.19 | | $ | 0.81 | | $ | 0.64 | |
DILUTED | | $ | 0.23 | | $ | 0.17 | | $ | 0.78 | | $ | 0.61 | |
WEIGHTED AVERAGE SHARES OUTSTANDING | | | | | | | | | |
BASIC | | 21,872 | | 20,675 | | 21,721 | | 20,411 | |
DILUTED | | 23,023 | | 22,203 | | 22,694 | | 21,316 | |
| | | | | | | | | |
COMMON SHARES OUTSTANDING AT PERIOD END | | | | | | 21,951 | | 20,742 | |
BOOK VALUE PER SHARE - COMMON | | | | | | $ | 5.56 | | $ | 4.61 | |
TANGIBLE BOOK VALUE PER SHARE - COMMON | | | | | | $ | 3.69 | | $ | 2.79 | |
| | | | | | | | | |
PERIOD END BALANCES | | | | | | | | | |
Total Assets | | | | | | 1,699,561 | | 1,403,877 | |
Loans & Leases (Net) | | | | | | 1,099,633 | | 931,212 | |
Goodwill and Intangible Assets | | | | | | 41,179 | | 37,696 | |
Deposits | | | | | | 1,147,010 | | 959,178 | |
Junior Subordinated Debentures | | | | | | 71,637 | | 40,570 | |
Common Shareholder’s Equity | | | | | | 122,085 | | 95,664 | |
Tangible Shareholder’s Equity | | | | | | 80,906 | | 57,968 | |
Interest-Earning Assets | | | | | | 1,590,610 | | 1,300,122 | |
Interest-Bearing Liabilities | | | | | | 1,208,044 | | 977,443 | |
| | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | |
Average Assets | | | | | | 1,554,466 | | 1,230,371 | |
Average Loans & Leases (Net) | | | | | | 1,016,096 | | 843,886 | |
Average Deposits | | | | | | 1,039,791 | | 902,437 | |
Average Junior Subordinated Debentures | | | | | | 59,898 | | 25,808 | |
Average Common Shareholder’s Equity | | | | | | 111,288 | | 89,730 | |
Average Interest-Earning Assets | | | | | | 1,445,629 | | 1,161,407 | |
Average Interest-Bearing Liabilities | | | | | | 1,102,437 | | 874,941 | |
| | Quarter Ended | | Year ended | |
| | Dec-04 | | Dec-03 | | Dec-04 | | Dec-03 | |
NON-PERFORMING ASSETS | | | | | | | | | |
Non-Performing loans & leases | | | | | | | | | |
Loans & Leases 90 days or more past due & still accruing interest | | | | | | $ | 76 | | $ | — | |
Nonaccrual loans & leases | | | | | | 1,313 | | 1,519 | |
Total Non-Performing loans & leases | | | | | | $ | 1,389 | | $ | 1,519 | |
Repossessed Assets | | | | | | 38 | | 60 | |
Total Non-Performing assets | | | | | | $ | 1,427 | | $ | 1,579 | |
| | | | | | | | | |
CHANGES IN ALLOWANCE FOR LOAN & LEASE LOSSES | | | | | | | | | |
Beginning balance | | | | | | 12,403 | | 10,388 | |
Provision for loan & lease losses | | | | | | 3,015 | | 2,760 | |
Loans & leases (Charged-off) / Recovered | | | | | | (744 | ) | (745 | ) |
Ending balance | | | | | | $ | 14,674 | | $ | 12,403 | |
| | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | |
Net Interest Margin | | 4.23 | % | 4.24 | % | 4.18 | % | 4.40 | % |
Efficiency Ratio | | 66.89 | % | 64.23 | % | 65.09 | % | 65.70 | % |
Return on Average Assets | | 1.25 | % | 1.13 | % | 1.13 | % | 1.06 | % |
Return on Average Common Shareholder’s Equity | | 17.71 | % | 16.41 | % | 15.84 | % | 14.52 | % |
Noninterest Income as a Percentage of Operating Revenues | | 38.49 | % | 32.32 | % | 31.48 | % | 24.86 | % |
| | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | |
Nonperforming Assets to Total Assets | | | | | | 0.08 | % | 0.11 | % |
Nonperforming Loans & Leases to Total Loans & Leases | | | | | | 0.12 | % | 0.16 | % |
Allowance for Loan & Lease Losses to Total Loans & Leases | | | | | | 1.32 | % | 1.31 | % |
Allowance for Loan & Lease Losses to Nonperforming Loans & Leases | | | | | | 1056.44 | % | 816.52 | % |
CoBiz Inc.
December 31, 2004
(unaudited)
(Dollars in thousands)
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
Net interest income | | | | | | | | | | | | | | | |
Quarter ended December 31, 2004 | | $ | 13,463 | | $ | 4,064 | | $ | 18 | | $ | 2 | | $ | 1 | | $ | (895 | ) | $ | 16,653 | |
Quarter ended September 30, 2004 | | 12,702 | | 3,527 | | 3 | | 1 | | 1 | | (813 | ) | 15,421 | |
Annualized quarterly growth | | 23.8 | % | 60.6 | % | 1,989.1 | % | 397.8 | % | .0 | % | (40.1 | )% | 31.8 | % |
| | | | | | | | | | | | | | | |
Quarter ended December 31, 2003 | | $ | 10,701 | | $ | 2,475 | | $ | 1 | | $ | 3 | | $ | 2 | | $ | 275 | | $ | 13,457 | |
Annual growth | | 25.8 | % | 64.2 | % | 1,700.0 | % | (33.3 | )% | (50.0 | )% | (425.5 | )% | 23.7 | % |
| | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | |
Quarter ended December 31, 2004 | | $ | 939 | | $ | 268 | | $ | 5,330 | | $ | 929 | | $ | 2,940 | | $ | 13 | | $ | 10,419 | |
Quarter ended September 30, 2004 | | 1,123 | | 340 | | 2,805 | | 922 | | 1,936 | | (11 | ) | 7,115 | |
Annualized quarterly growth | | (65.2 | )% | (84.2 | )% | 358.1 | % | 3.0 | % | 206.3 | % | 855.5 | % | 184.7 | % |
| | | | | | | | | | | | | | | |
Quarter ended December 31, 2003 | | $ | 783 | | $ | 201 | | $ | 236 | | $ | 761 | | $ | 4,303 | | $ | 143 | | $ | 6,427 | |
Annual growth | | 19.9 | % | 33.3 | % | 2,158.5 | % | 22.1 | % | (31.7 | )% | (90.9 | )% | 62.1 | % |
| | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | |
Quarter ended December 31, 2004 | | $ | 4,305 | | $ | 562 | | $ | 1,215 | | $ | 49 | | $ | 365 | | $ | (1,183 | ) | $ | 5,313 | |
Quarter ended September 30, 2004 | | 4,401 | | 529 | | 848 | | 64 | | (84 | ) | (952 | ) | 4,806 | |
Annualized quarterly growth | | (8.7 | )% | 24.8 | % | 172.2 | % | (93.2 | )% | 2,126.5 | % | (96.4 | )% | 42.0 | % |
| | | | | | | | | | | | | | | |
Quarter ended December 31, 2003 | | $ | 3,408 | | $ | 365 | | $ | (342 | ) | $ | 12 | | $ | 992 | | $ | (585 | ) | $ | 3,850 | |
Annual growth | | 26.3 | % | 54.0 | % | 455.3 | % | 308.3 | % | (63.2 | )% | (102.2 | )% | 38.0 | % |
| | | | | | | | | | | | | | | |
Earnings Per Share (Diluted) | | | | | | | | | | | | | | | |
Quarter ended December 31, 2004 | | $ | 0.19 | | $ | 0.02 | | $ | 0.05 | | $ | — | | $ | 0.02 | | $ | (0.05 | ) | $ | 0.23 | |
Quarter ended September 30, 2004 | | 0.20 | | 0.03 | | 0.03 | | — | | — | | (0.05 | ) | 0.21 | |
Annualized quarterly growth | | (19.9 | )% | (132.6 | )% | 265.2 | % | .0 | % | 100.0 | % | .0 | % | 37.9 | % |
| | | | | | | | | | | | | | | |
Quarter ended December 31, 2003 | | $ | 0.15 | | $ | 0.01 | | $ | (0.01 | ) | $ | — | | $ | 0.05 | | $ | (0.03 | ) | $ | 0.17 | |
Annual growth | | 26.7 | % | 100.0 | % | 600.0 | % | .0 | % | (60.0 | )% | (66.7 | )% | 35.3 | % |
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
Total loans and leases | | | | | | | | | | | | | | | |
At December 31, 2004 | | $ | 817,666 | | $ | 296,342 | | $ | — | | $ | — | | $ | — | | $ | 299 | | $ | 1,114,307 | |
At September 30, 2004 | | 820,061 | | 273,515 | | — | | — | | — | | 478 | | 1,094,054 | |
Annualized quarterly growth | | (1.2 | )% | 33.2 | % | .0 | % | .0 | % | .0 | % | (149.0 | )% | 7.4 | % |
| | | | | | | | | | | | | | | |
At December 31, 2003 | | $ | 725,209 | | $ | 217,007 | | $ | — | | $ | — | | $ | — | | $ | 1,399 | | $ | 943,615 | |
Annual growth | | 12.7 | % | 36.6 | % | .0 | % | .0 | % | .0 | % | (78.6 | )% | 18.1 | % |
| | | | | | | | | | | | | | | |
2004 average yield or cost | | 5.9 | % | 6.1 | % | .0 | % | .0 | % | .0 | % | 5.1 | % | 6.0 | % |
| | | | | | | | | | | | | | | |
Total deposits and customer repurchase agreements | | | | | | | | | | | | | | | |
At December 31, 2004 | | $ | 1,083,883 | | $ | 218,414 | | $ | — | | $ | 806 | | $ | — | | $ | — | | $ | 1,303,103 | |
At September 30, 2004 | | 1,036,073 | | 221,121 | | — | | 607 | | — | | — | | 1,257,801 | |
Annualized quarterly growth | | 18.4 | % | (4.9 | )% | .0 | % | 130.4 | % | .0 | % | .0 | % | 14.3 | % |
| | | | | | | | | | | | | | | |
At December 31, 2003 | | $ | 918,689 | | $ | 183,909 | | $ | — | | $ | 1,233 | | $ | — | | $ | — | | $ | 1,103,831 | |
Annual growth | | 18.0 | % | 18.8 | % | .0 | % | (34.6 | )% | .0 | % | .0 | % | 18.1 | % |
| | | | | | | | | | | | | | | |
2004 average yield or cost | | 0.9 | % | 1.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.0 | % |
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
| | For the three months ended December 31, 2004 | |
Income Statement | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total interest income | | $ | 17,042 | | $ | 4,892 | | $ | 18 | | $ | 3 | | $ | 1 | | $ | 29 | | $ | 21,985 | |
Total interest expense | | 3,579 | | 828 | | — | | 1 | | — | | 924 | | 5,332 | |
Net interest income | | 13,463 | | 4,064 | | 18 | | 2 | | 1 | | (895 | ) | 16,653 | |
Provision for loan and lease losses | | 385 | | 190 | | — | | — | | — | | — | | 575 | |
Net interest income after provision for loan and lease losses | | 13,078 | | 3,874 | | 18 | | 2 | | 1 | | (895 | ) | 16,078 | |
Noninterest income | | 939 | | 268 | | 5,330 | | 929 | | 2,940 | | 13 | | 10,419 | |
Noninterest expense | | 3,526 | | 2,201 | | 3,291 | | 782 | | 2,223 | | 6,076 | | 18,099 | |
Income before income taxes | | 10,491 | | 1,941 | | 2,057 | | 149 | | 718 | | (6,958 | ) | 8,398 | |
Provision for income taxes | | 3,843 | | 737 | | 789 | | 61 | | 277 | | (2,622 | ) | 3,085 | |
Net income before management fees and overhead allocations | | $ | 6,648 | | $ | 1,204 | | $ | 1,268 | | $ | 88 | | $ | 441 | | $ | (4,336 | ) | $ | 5,313 | |
Management fees and overhead allocations, net of tax | | 2,343 | | 642 | | 53 | | 39 | | 76 | | (3,153 | ) | — | |
Net income | | $ | 4,305 | | $ | 562 | | $ | 1,215 | | $ | 49 | | $ | 365 | | $ | (1,183 | ) | $ | 5,313 | |
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
| | For the three months ended September 30, 2004 | |
Income Statement | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total interest income | | $ | 15,676 | | $ | 4,280 | | $ | 3 | | $ | 3 | | $ | 1 | | $ | 30 | | $ | 19,993 | |
Total interest expense | | 2,974 | | 753 | | — | | 2 | | — | | 843 | | 4,572 | |
Net interest income | | 12,702 | | 3,527 | | 3 | | 1 | | 1 | | (813 | ) | 15,421 | |
Provision for loan and lease losses | | 730 | | 400 | | — | | — | | — | | — | | 1,130 | |
Net interest income after provision for loan and lease losses | | 11,972 | | 3,127 | | 3 | | 1 | | 1 | | (813 | ) | 14,291 | |
Noninterest income | | 1,123 | | 340 | | 2,805 | | 922 | | 1,936 | | (11 | ) | 7,115 | |
Noninterest expense | | 3,636 | | 2,001 | | 1,387 | | 775 | | 1,977 | | 4,167 | | 13,943 | |
Income before income taxes | | 9,459 | | 1,466 | | 1,421 | | 148 | | (40 | ) | (4,991 | ) | 7,463 | |
Provision for income taxes | | 3,459 | | 524 | | 540 | | 59 | | (10 | ) | (1,915 | ) | 2,657 | |
Net income before management fees and overhead allocations | | $ | 6,000 | | $ | 942 | | $ | 881 | | $ | 89 | | $ | (30 | ) | $ | (3,076 | ) | $ | 4,806 | |
Management fees and overhead allocations, net of tax | | 1,599 | | 413 | | 33 | | 25 | | 54 | | (2,124 | ) | — | |
Net income | | $ | 4,401 | | $ | 529 | | $ | 848 | | $ | 64 | | $ | (84 | ) | $ | (952 | ) | $ | 4,806 | |
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
| | For the three months ended December 31, 2003 | |
Income statement | | | | | | | | | | | | | | | |
Total interest income | | $ | 12,496 | | $ | 3,053 | | $ | 1 | | $ | 7 | | $ | 2 | | $ | 1,425 | | $ | 16,984 | |
Total interest expense | | 1,795 | | 578 | | — | | 4 | | — | | 1,150 | | 3,527 | |
Net interest income | | 10,701 | | 2,475 | | 1 | | 3 | | 2 | | 275 | | 13,457 | |
Provision for loan and lease losses | | 710 | | 410 | | — | | — | | — | | — | | 1,120 | |
Net interest income after provision for loan and lease losses | | 9,991 | | 2,065 | | 1 | | 3 | | 2 | | 275 | | 12,337 | |
Noninterest income | | 783 | | 201 | | 236 | | 761 | | 4,303 | | 143 | | 6,427 | |
Noninterest expense | | 2,704 | | 1,242 | | 743 | | 711 | | 2,625 | | 4,744 | | 12,769 | |
Income before income taxes | | 8,070 | | 1,024 | | (506 | ) | 53 | | 1,680 | | (4,326 | ) | 5,995 | |
Provision for income taxes | | 3,043 | | 411 | | (189 | ) | 9 | | 638 | | (1,767 | ) | 2,145 | |
Net income before management fees and overhead allocations | | $ | 5,027 | | $ | 613 | | $ | (317 | ) | $ | 44 | | $ | 1,042 | | $ | (2,559 | ) | $ | 3,850 | |
Management fees and overhead allocations, net of tax | | 1,619 | | 248 | | 25 | | 32 | | 50 | | (1,974 | ) | — | |
Net income | | $ | 3,408 | | $ | 365 | | $ | (342 | ) | $ | 12 | | $ | 992 | | $ | (585 | ) | $ | 3,850 | |
| | Three months ended December 31, | | Year ended December 31, | |
| | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2004 | | 2003 | | Amount | | % | | 2004 | | 2003 | | Amount | | % | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | |
Deposit service charges | | $ | 689 | | $ | 675 | | $ | 14 | | 2 | % | $ | 2,829 | | $ | 2,563 | | $ | 266 | | 10 | % |
Other loan fees | | 139 | | 190 | | (51 | ) | (27 | )% | 679 | | 720 | | (41 | ) | (6 | )% |
Trust and advisory income | | 928 | | 760 | | 168 | | 22 | % | 3,644 | | 2,346 | | 1,298 | | 55 | % |
Insurance revenue | | 2,939 | | 4,456 | | (1,517 | ) | (34 | )% | 9,392 | | 8,903 | | 489 | | 5 | % |
Investment banking revenue | | 5,329 | | 231 | | 5,098 | | 2207 | % | 9,231 | | 1,370 | | 7,861 | | 574 | % |
Other income | | 380 | | 111 | | 269 | | 242 | % | 1,425 | | 810 | | 615 | | 76 | % |
Gain on sale of other assets and securities | | 15 | | 4 | | 11 | | 275 | % | 402 | | 87 | | 315 | | 362 | % |
Total noninterest income | | $ | 10,419 | | $ | 6,427 | | $ | 3,992 | | 62 | % | $ | 27,602 | | $ | 16,799 | | $ | 10,803 | | 64 | % |
| | Three months ended December 31, | | Year ended December 31, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2004 | | 2003 | | Amount | | % | | 2004 | | 2003 | | Amount | | % | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 12,704 | | $ | 8,236 | | $ | 4,468 | | 54 | % | $ | 37,514 | | $ | 28,039 | | $ | 9,475 | | 34 | % |
Occupancy expenses, premises and equipment | | 2,599 | | 2,149 | | 450 | | 21 | % | 9,427 | | 7,994 | | 1,433 | | 18 | % |
Amortization of intangibles | | 150 | | 138 | | 12 | | 9 | % | 545 | | 441 | | 104 | | 24 | % |
Other operating expenses | | 2,646 | | 2,246 | | 400 | | 18 | % | 9,323 | | 7,866 | | 1,457 | | 19 | % |
Total noninterest expenses | | $ | 18,099 | | $ | 12,769 | | $ | 5,330 | | 42 | % | $ | 56,809 | | $ | 44,340 | | $ | 12,469 | | 28 | % |
| | December 31, 2004 | | December 31, 2003 | | | | | | | | | |
| | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | | | | | | | | |
LOANS AND LEASES | | | | | | | | | | | | | | | | | |
Commercial | | $ | 386,954 | | 35.2 | % | $ | 308,174 | | 33.1 | % | | | | | | | | |
Real Estate - mortgage | | 527,266 | | 47.9 | % | 454,865 | | 48.8 | % | | | | | | | | |
Real Estate - construction | | 121,138 | | 11.0 | % | 109,326 | | 11.7 | % | | | | | | | | |
Consumer | | 65,792 | | 6.0 | % | 61,049 | | 6.6 | % | | | | | | | | |
Municipal Leases | | 12,858 | | 1.2 | % | 8,803 | | 0.9 | % | | | | | | | | |
Small business leases | | 299 | | 0.0 | % | 1,398 | | 0.2 | % | | | | | | | | |
Loans and leases | | 1,114,307 | | 101.3 | % | 943,615 | | 101.3 | % | | | | | | | | |
Less allowance for loan and lease losses | | (14,674 | ) | (1.3 | )% | (12,403 | ) | (1.3 | )% | | | | | | | | |
Net loan and leases | | $ | 1,099,633 | | 100.0 | % | $ | 931,212 | | 100.0 | % | | | | | | | | |
| | | December 31, 2004 | | December 31, 2003 | | | | | | | | | |
| | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | | | | | | | | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | | | | | | | |
NOW and money market accounts | | $ | 463,013 | | 35.5 | % | $ | 348,518 | | 31.5 | % | | | | | | | | |
Savings | | 10,684 | | 0.8 | % | 8,804 | | 0.8 | % | | | | | | | | |
Certificates of deposits under $100,000 | | 76,544 | | 5.9 | % | 90,587 | | 8.2 | % | | | | | | | | |
Certificates of deposits $100,000 and over | | 240,795 | | 18.5 | % | 206,945 | | 18.7 | % | | | | | | | | |
Total interest-earning deposits | | 791,036 | | 60.7 | % | 654,854 | | 59.3 | % | | | | | | | | |
Noninterest-bearing demand deposits | | 355,974 | | 27.3 | % | 304,324 | | 27.6 | % | | | | | | | | |
Customer repurchase agreements | | 156,093 | | 12.0 | % | 144,653 | | 13.1 | % | | | | | | | | |
Total deposits and customer repurchase agreements | | $ | 1,303,103 | | 100.0 | % | $ | 1,103,831 | | 100.0 | % | | | | | | | | |
| | For the three months ended December 31, | |
| | 2004 | | 2003 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | earned | | yield | | Average | | Earned | | yield | |
| | Balance | | or paid | | or cost | | Balance | | or paid | | or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | 7,646 | | 53 | | 2.71 | % | 887 | | 4 | | 1.76 | % |
Investment securities | | 481,003 | | 4,223 | | 3.44 | % | 365,505 | | 3,213 | | 3.44 | % |
Loans and leases | | 1,103,382 | | 17,813 | | 6.32 | % | 910,695 | | 13,837 | | 5.95 | % |
Allowance for loan and leases | | (14,484 | ) | 0 | | 0.00 | % | (11,801 | ) | 0 | | 0.00 | % |
Total interest earning assets | | 1,577,547 | | 22,089 | | 5.48 | % | 1,265,286 | | 17,054 | | 5.27 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 36,522 | | | | | | 32,988 | | | | | |
Other | | 77,353 | | | | | | 48,566 | | | | | |
TOTAL ASSETS | | $ | 1,691,422 | | | | | | $ | 1,346,840 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and Money Market Deposits | | 456,037 | | 1,117 | | 0.97 | % | 341,876 | | 578 | | 0.67 | % |
Savings Deposits | | 10,508 | | 10 | | 0.38 | % | 8,833 | | 7 | | 0.31 | % |
Certificates of Deposits | | | | | | | | | | | | | |
Under $100,000 | | 67,390 | | 453 | | 2.67 | % | 109,395 | | 653 | | 2.37 | % |
$100,000 and over | | 252,584 | | 1,300 | | 2.05 | % | 197,321 | | 968 | | 1.95 | % |
Total Interest-bearing deposits | | 786,519 | | 2,880 | | 1.46 | % | 657,425 | | 2,206 | | 1.33 | % |
Other Borrowings | | | | | | | | | | | | | |
Securities and loans sold under agreements to repurchase and federal funds purchased | | 305,297 | | 1,312 | | 1.68 | % | 183,151 | | 559 | | 1.19 | % |
FHLB advances | | 37,391 | | 184 | | 1.93 | % | 79,003 | | 277 | | 1.37 | % |
Junior subordinated debentures | | 71,644 | | 955 | | 5.22 | % | 40,000 | | 485 | | 4.74 | % |
Total interest-bearing liabilities | | 1,200,851 | | 5,331 | | 1.75 | % | 959,579 | | 3,527 | | 1.45 | % |
Noninterest-bearing demand accounts | | 360,287 | | | | | | 288,544 | | | | | |
Total deposits and interest-bearing liabilities | | 1,561,138 | | | | | | 1,248,123 | | | | | |
Other noninterest-bearing liabilities | | 10,955 | | | | | | 5,645 | | | | | |
Total liabilities and preferred securities | | 1,572,093 | | | | | | 1,253,768 | | | | | |
Shareholders’ equity | | 119,329 | | | | | | 93,072 | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,691,422 | | | | | | $ | 1,346,840 | | | | | |
Net interest income | | | | $ | 16,758 | | | | | | $ | 13,527 | | | |
Net interest spread | | | | | | 3.73 | % | | | | | 3.82 | % |
Net interest margin | | | | | | 4.23 | % | | | | | 4.24 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 131.37 | % | | | | | 131.86 | % | | | | |
| | | | | | | | | | | | | | | | | |
| | For the year ended December 31, | |
| | 2004 | | 2003 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | earned | | yield | | Average | | earned | | yield | |
| | Balance | | or paid | | or cost | | Balance | | or paid | | or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | 3,960 | | 145 | | 3.66 | % | 1,046 | | 15 | | 1.43 | % |
Investment securities | | 425,573 | | 14,671 | | 3.45 | % | 316,475 | | 12,107 | | 3.83 | % |
Loans and leases | | 1,029,538 | | 63,033 | | 6.12 | % | 855,085 | | 53,187 | | 6.22 | % |
Allowance for loan and leases | | (13,442 | ) | 0 | | | | (11,199 | ) | 0 | | | |
Total interest earning assets | | 1,445,629 | | 77,849 | | 5.39 | % | 1,161,407 | | 65,309 | | 5.62 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 35,485 | | | | | | 31,769 | | | | | |
Other | | 73,352 | | | | | | 37,195 | | | | | |
TOTAL ASSETS | | $ | 1,554,466 | | | | | | $ | 1,230,371 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and Money Market Deposits | | 398,352 | | 3,272 | | 0.82 | % | 318,401 | | 2,433 | | 0.76 | % |
Savings Deposits | | 9,642 | | 34 | | 0.35 | % | 8,465 | | 38 | | 0.45 | % |
Certificates of Deposits | | | | | | | | | | | | | |
Under $100,000 | | 76,033 | | 1,829 | | 2.41 | % | 124,714 | | 3,338 | | 2.68 | % |
$100,000 and over | | 226,113 | | 4,446 | | 1.97 | % | 189,650 | | 4,323 | | 2.28 | % |
Total Interest-bearing deposits | | 710,140 | | 9,581 | | 1.35 | % | 641,230 | | 10,132 | | 1.58 | % |
Other Borrowings | | | | | | | | | | | | | |
Securities and loans sold under agreements to repurchase and federal funds purchased | | 273,265 | | 3,947 | | 1.44 | % | 147,792 | | 1,797 | | 1.22 | % |
FHLB advances | | 59,134 | | 877 | | 1.48 | % | 60,111 | | 928 | | 1.54 | % |
Junior subordinated debentures | | 59,898 | | 2,982 | | 4.98 | % | 25,808 | | 1,377 | | 5.34 | % |
Total interest-bearing liabilities | | 1,102,437 | | 17,387 | | 1.58 | % | 874,941 | | 14,234 | | 1.63 | % |
Noninterest-bearing demand accounts | | 329,651 | | | | | | 261,207 | | | | | |
Total deposits and interest-bearing liabilities | | 1,432,088 | | | | | | 1,136,148 | | | | | |
Other noninterest-bearing liabilities | | 11,090 | | | | | | 4,493 | | | | | |
Total liabilities and preferred securities | | 1,443,178 | | | | | | 1,140,641 | | | | | |
Shareholders’ equity | | 111,288 | | | | | | 89,730 | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,554,466 | | | | | | $ | 1,230,371 | | | | | |
Net interest income | | | | $ | 60,462 | | | | | | $ | 51,075 | | | |
Net interest spread | | | | | | 3.81 | % | | | | | 4.00 | % |
Net interest margin | | | | | | 4.18 | % | | | | | 4.40 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 131.13 | % | | | | | 132.74 | % | | | | |
| | | | | | | | | | | | | | | | | | | |
